The New Zealand dollar climbed today, reaching the record high since April against the Japanese yen, after the Reserve Bank of New Zealand maintained its key Official Cash Rate unchanged and refrained from suggesting rate cuts in the accompanying statement.

The RBNZ left its main interest rate at 2.5 percent. Governor Graeme Wheeler said:

Market sentiment has improved from earlier in the year, suggesting the risks to the global outlook are more balanced.

The statement was not completely positive though:

Fiscal consolidation is constraining demand growth, and the high New Zealand dollar is undermining export earnings and encouraging substitution toward imported goods and services.

NZD/USD rose from 0.8201 to 0.8234 as of 11:24 GMT today. NZD/JPY advanced from 65.44 to 65.98 and its daily high of 66.07 was the highest since April 30.

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